Authors : Peter Elaigwu Oteh; Olanrewaju Akeem Salami; Adeyeye Mercy Modupe; Jacob Abu Alabi

Volume/Issue : Volume 11 - 2026, Issue 2 - February

Google Scholar : https://tinyurl.com/yam9m4rs

Scribd : https://tinyurl.com/nhhu9mpa

DOI : https://doi.org/10.38124/ijisrt/26feb281

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This paper forms part of my Doctoral research titled “Entrepreneurial Ecosystem Components and the Performance of Agro-allied SMEs in North Central, Nigeria. It examines the relationship between access to finance and the performance of agro-allied small and medium enterprises (SMEs) in North Central, Nigeria. Using a quantitative research approach, primary data were collected through structured questionnaires administered to agro-allied SME operators and employees across seven states and the Federal Capital Territory. A descriptive cross-sectional design and simple random sampling were employed to survey a population of 1,492 registered SMEs, yielding 713 valid responses for analysis. Access to finance was measured using indicators relating to bank credit, grants, microfinance, collateral requirements, and alternative financing sources, while SME performance was proxied by competitive advantage. Data were analysed using descriptive statistics and regression analysis. Descriptive findings reveal pervasive financing constraints, with most SMEs reporting limited access to bank loans, grants, microfinance, and venture capital. However, regression results show that access to finance has a positive but statistically insignificant effect on SME performance (β = 0.059, p = 0.115), indicating that financing access alone does not significantly explain performance variations among agro-allied SMEs in the study area. This suggests that existing financial products may be inadequate in scale, structure, or suitability to drive meaningful performance improvements. The study concludes that, beyond improving credit availability, policymakers and financial institutions must focus on designing context-specific, affordable, and growth-oriented financing mechanisms, complemented by other ecosystem factors, to enhance the productivity, competitiveness, and sustainability of agro-allied SMEs in North Central Nigeria.

Keywords : Access to Finance, Entrepreneurial Ecosystem, Financial Inclusion, Nigeria, SME Performance.

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